CRCT posts 10% fall in Q4 DPU to 2.04 cents

CapitaRetail China Trust (CRCT) yesterday reported a 10 per cent fall in income to be distributed in fourth quarter 2009 to $12.7 million from $14.1 million a year ago as rental revenue fell.

The trust, which gets its income from rents from eight retail properties in China, said that distribution per unit (DPU) likewise fell 10 per cent to 2.04 cents from 2.27 cents.

In Q4 2009, gross revenue was $29.7 million, down 5 per cent from a year ago due to frictional losses at Wangjing Mall when new tenants were introduced to improve mall positioning, as well as lower revenue from Saihan Mall.

The trust is upbeat on future prospects. Chief executive Wee Hui Kan said that the trust’s first-tier city malls are stable and greater contributions are also being seen from other malls.

‘I think we can certainly expect some growth (from CRCT in 2010) as China is growing,’ said Mr Wee. The trust will see organic growth on back of rising retail sales in China. In addition, it is looking for suitable acquisition opportunities, he added.

Mr Wee also said that the trust will continue to strengthen its business model to drive operational performance and improve results.

For the full 2009 financial year, CRCT reported a 10 per cent climb income to be distributed to $50.6 million, from $45.9 million in 2008, on improved revenue from most of its malls.

For FY2009, CRCT retained $0.55 million of the income available for distribution for working capital and capital expenditure.

DPU for the full year rose to 8.14 cents from 7.53 cents.

As at end-2009, CRCT’s total borrowing was $406.4 million while gearing stood at 33.6 per cent. The trust has successfully refinanced a $88 million loan facility which is maturing on Feb 5 this year. CRCT’s next major debt will mature in November and discussions with financial institutions have commenced. The trust is confident that it will refinance the debt when it matures, it said.

CRCT shares lost 4 cents or 3 per cent to close at $1.20 yesterday.

Source : Business Times – 30 Jan 2010